Carrier close to net profitability (159 words)

Published: 8/2/2001

Aeroflot has released its 2000 IAS figures, with little in the way of surprises other than to reaffirm that it is steadily getting its act in order. The fact that the airline improved its operating margin, despite the impact of fuel price rises in 2000, gave some sign of the improving underlying performance. The figures, however, emphasize the importance of non-flight income to the carrier, contributing $330m to its coffers from unspecified sources, but largely believed to be lucrative overflight fees and leased route licences ceded to Aeroflot by the government, although it remains unclear on what basis and for how long, given the considerable protest from other major carriers. Aeroflot appears to be on the verge of making net profits under IAS, assisted by strong top line growth in passenger numbers, the lower fuel prices in 2001 and reduced debt, following a settlement with the Ministry of Finance.

Article ID: 2683